A business organized as a corporation
A) is not a separate legal entity in most states.
B) requires that stockholders be personally liable for the debts of the business.
C) is owned by its stockholders.
D) terminates when one of its original stockholders dies.

Question

Quizplus · Accepted Answer

A corporation is owned by its stockholders, who elect a board of directors to make major business decisions on their behalf. The corporation is a separate legal entity from its owners, meaning that the owners are not personally liable for the debts or legal obligations of the business. A corporation can continue to exist even if one of its original stockholders dies, as ownership can be transferred through buying or selling stock.

A Business Organized as a Corporation